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Millennials Are Giving Up Their Dreams of Owning a Home

The rising cost of living is making home ownership feel increasingly unaffordable for many.

Millennials are increasingly abandoning their dreams of entering the housing market, with one in six admitting they have given up their search for a home after being unable to find an affordable one that they liked. A report by Bankrate highlights a growing generational divide in the struggle. Millennials, those aged between 29 and 44 years old, are the most discouraged, with 22 percent having given up on their goals. While Gen Z, or those aged 13 to 28, is the most active in searching, even 12 percent of the youngest buyers have already left the market, with only 9 percent actively looking for a home. The core issue is financial: with home prices and mortgage rates persistently high, the income required for a mid-priced home is approximately $116,600—far above the typical U.S. household income of $86,400. This housing affordability crisis is causing many to view homeownership, a traditional pillar of the American Dream, as increasingly unattainable. The sentiment is particularly strong among younger generations, with 54 percent of Gen Z believing older Americans had better opportunities. The challenges also extend beyond housing, with a separate report suggesting that the total cost of achieving the classic American Dream—including homeownership, retirement, and raising a family—has now ballooned to over $5 million, putting major life milestones further out of reach for many.